Surviving an IRS Audit

Notification of an IRS Audit A person or business will be notified by phone or mail that a tax audit is beginning for endorsement on their behalf. Included in this contact may be a list of the information required to repeal the examination and clear the individual or company from owing additional money, fines or fees.

How is Someone Chosen for an IRS Audit? Anytime a person or company files their tax returns, the information inputted in the essential fields are lined up with additional statements that fit the categories as determined by the IRS. As soon as the return is reviewed by someone who is knowledgeable in the field of the return, the accountant will either approve the filed return as is, or set it aside for a complete tax examination. Should it be rejected for clearance, the first stage of verification needs are made. There is also a random screening selection that will mark a return based exclusively on a formula that revolves around statistical information.An additional tax audit inducer is when papers do not match, such as W-2s or 1099s. Blatant signs of red flags on a business partner or investors’ return may also induce an individual or company being audited as well.

Responding to an IRS Audit It is possible to reply to a tax audit exclusively by mail. If the IRS provides an individual with a catalog of items needed to clear the tax audit from contest, the tax payer can simply create copies of this paperwork and present it to the IRS through mail. An IRS audit can also be fought by returning the requested resources to a local IRS office, or by scheduling an appointment with an IRS agent at your organization’s physical location, allowing all information to be seen at once.

Your Rights as a Tax Payer People have the right to be addressed courteously and professionally by all IRS agents, and are entitled to a right to privacy and confidentiality when dealing with tax problems. In addition, they have the right to know why the IRS is asking for the paperwork, and the right to know how they will use that information once obtained. Additionally, each individual has the right to have a third party representative oversee the audit, and the right to appeal any disagreements put forth by the organization, even in a court of law. Andy Gayheart